The aggregate federal share of compensation refers to the total amount of money that the U.S. Department of the Treasury pays for the federal portion of compensation related to insured losses during a specific program year. This term is primarily used in the context of the Terrorism Risk Insurance Program, which provides financial assistance to policyholders who suffer losses due to acts of terrorism.
This term is relevant in the field of insurance law, particularly concerning federal programs that address risks associated with terrorism. The aggregate federal share of compensation is crucial for understanding how federal assistance is allocated to individuals and businesses affected by such events. Users may encounter this term when dealing with insurance claims related to terrorism or when utilizing legal templates that address these issues.
Here are a couple of examples of abatement:
For instance, if a business suffers a loss of $1 million due to a terrorist attack and is insured under the Terrorism Risk Insurance Program, the aggregate federal share of compensation may cover a significant portion of that loss, depending on the terms of the insurance and the program's guidelines. (hypothetical example)
The primary law governing the aggregate federal share of compensation is found in the Terrorism Risk Insurance Act (TRIA), which established the framework for federal assistance in the event of terrorist attacks. Specific regulations can be found in 31 CFR 50.5.
| Term | Definition | Difference |
|---|---|---|
| Federal share of compensation | The portion of compensation covered by the federal government. | This is a broader term that can apply to various federal programs, while aggregate federal share specifically refers to the total amount for a program year. |
| Insured losses | Losses covered by an insurance policy. | Insured losses are the basis for calculating the aggregate federal share of compensation. |
If you believe you may be eligible for compensation under the Terrorism Risk Insurance Program, it is advisable to review your insurance policy and consult with your insurance provider. You can also explore US Legal Forms for legal templates that can assist you in filing claims or understanding your rights. If your situation is complex, seeking professional legal help may be necessary.
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| Attribute | Details |
|---|---|
| Typical Fees | Varies by insurance policy |
| Jurisdiction | Federal |
| Possible Penalties | None directly related, but failure to report losses may affect claims |
The Terrorism Risk Insurance Program is a federal program that provides compensation for insured losses resulting from acts of terrorism.